PROVIDENCE – Webster Bank’s parent company Tuesday reported a third-quarter profit of $93.9 million, a 5.8% decrease from $99.7 in profit for the same quarter last year.
Earnings for the quarter ended Sept. 30 were $1 per share, compared with earnings of $1.06 per share in the third quarter 2018, Waterbury, Conn.-based Webster Financial Corp. reported.
The decrease in year-over-year profit was driven by an additional $15.6 million in interest expenses, stemming from deposits and borrowings, in the third quarter compared with third quarter 2018.
“The third quarter continues to demonstrate the power of our banking franchise as evidenced by strong year-over-year loan and deposit growth,” Webster President and CEO John R. Ciulla said in a statement.
“We have now posted 40 consecutive quarters of year-over-year revenue growth and seven quarters of return on average tangible common equity above 15%,” Ciulla said.
Loans and leases as of Sept. 30 totaled $19.6 billion, a 6.7% increase from $18.3 billion a year earlier.
Year-over-year, commercial loans increased by 9.5% to $7 billion; commercial real estate loans increased by 13.1% to $5.4 billion; residential mortgage loans increased by 10.4% to $4.9 billion; and consumer loans decreased by 6.7% to $2.3 billion, the bank reported.
Deposits totaled $23.3 billion as of Sept. 30, a 5.8% increase from $22 billion a year earlier.
Total third-quarter liabilities, including deposits, were $26.7 billion, a 9% increase from $24.5 billion in the third quarter 2018.
Third-quarter assets, including loans and leases, totaled $29.9 billion, a 9.3% increase from $27.3 billion a year earlier.
Interest income, mainly from interest and fees on loans and leases, totaled $294.1 million in the third quarter, a 9.6% increase from the same period last year.
Non-interest income, mainly from deposit service fees, totaled $69.9 million in the quarter, a 3.3% decrease from a year earlier.
Interest expense, including pay outs on deposits, totaled $53.6 million in the quarter, a 41.1% increase from a year earlier.
Non-interest expense, including compensation and benefits, totaled $179.9 million in the quarter, about flat from a year earlier.
Non-performing assets totaled $166.7 million in the quarter, a 5.5.% increase from a year earlier.
Non-performing loans totaled $162.7 million in the quarter, or 0.83% of all loans, compared with $152.7 million in non-performing loans, or 0.83% of all loans, a year earlier.
“We’ve achieved our 10th consecutive quarter of positive operating leverage and our efficiency has been below 57% over the past year,” Webster Chief Financial Officer Glenn MacInnes said in a statement.
He added the bank is “diligently controlling expenses while investing confidently.”
The ninth-largest consumer bank in Rhode Island based on market share of deposits, Webster provides business and consumer banking, mortgage, financial planning, trust, and investment services through 157 branches and 309 automated teller machines.
The parent company also owns the asset-based lending firm Webster Business Credit Corp.; the equipment finance firm Webster Capital Finance Corp.; and HSA Bank, a division of Webster Bank, which provides health savings, account trustee, and administrative services.
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.
Want to share this story? Click Here to purchase a link that allows anyone to read it on any device whether or not they are a subscriber.